GST Return

News on 23 July 2020

A reputed official of GSTN while speaking at the webinar of ASSOCHAM has said that the Government is planning to DUMP the new system of return and will continue with the OLD system with modifications. However, the return system for composition dealers was already introduced with CMP 08 and will continue.

It was planned to introduce the new system for normal dealers from 1st of October 2020.

The new system of return was planned as followings.

1. Normal Return Or GST RET 1?? Filled by : Turnover More than 5 Crore-mandatory, Up to 5 Crore -optional? Period: Quarterly or monthly Types of Supply Included: Outward: B2B , B2C, Export, SEZ, Deemed Export, Supply through E-commerce, Inward: RCM, Import, Import from SEZ, ITC of Purchase invoice not uploaded by supplier, ITC by ISD HSN: Turnover More than 5 Crore-mandatory, Up to 5 Crore -optional? NIL Return : By SMS available

2. Sahaj Return Or GST RET 2 Filled by : Up to 5 Crore Period: Quarterly Types of Supply Included: Outward: B2C Only Inward: RCM Only HSN: optional? NIL Return: By SMS available? Point to note: If there is B2B supply, export, import, the transaction with SEZ, ISD, or willing to take credit of ITC of invoices available but not uploaded by the seller : This returns cannot be used

3. Sugam or GST RET 3 Filled by: Up to 5 Crore Period: Quarterly Types of Supply Included: Outward: B2C and B2B Both Inward: RCM Only HSN: optional? NIL Return: By SMS available? Point to note: If there is export, import, a transaction with SEZ, ISD, or willing to take credit of ITC of invoices available but not uploaded by the seller : This returns cannot be used

4. GST CMP 8: This form will replace GSTR 4 Filled by : Composition dealer and The supplier of services who fulfil the conditions mentioned under the Notification Number 2/2019 Central Tax (Rate) dated 7 March 2019 having the aggregate annual turnover up to Rs 50 lakh in the previous financial year. Period: Quarterly Types of Supply: This will be a payment form. where user will be required to fill just the taxable amount and tax required to be paid Including RCM and interest if any.

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GST RET 1, RET 2 and RET 3 are structured to include FORM GST ANX-1, FORM GST ANX-2, FORM GST PMT-08. The taxpayer firstly needs to upload details of outward supplies in FORM GST ANX-1 and take action on the inward supplies auto-populated in FORM GST ANX-2. After that, the taxpayer shall file the main return in FORM GST RET-1/2/3 in which some data will be auto-populated from FORM GST ANX-1 and FORM GST ANX-2 and some data need to be manually entered by the taxpayer.

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The amendment shall be done through FORM GST ANX- 1A, FORM GST RET-1A/2A/3A.

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The system is being designed in such a way that invoices could be uploaded to the portal on continuous basis for any period and consequently its affect will be auto populated in returns required to be furnished henceforth.

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Switch Between quarterly returns is possible in following ways.

1. For RET 1 Monthly: To RET 1 quarterly or RET 2 : In beginning of financial year

2. For RET 2: To RET 1 (quarterly) or RET 3 : in beginning of any quarter

3. For RET 3: To RET 1 only : in beginning of any quarter

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Transition from old return to new Returns System

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1. GSTR GST ANX 1 will replace GSTR 1 from October 2019 onwards, and will be phased out completely from October 2020.

2. CMP 8 will replace GSTR 4 from July 2019, 1st CMP 08 will be filled on 18th July 2019. Now new Notified date change is 31st July.